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The Impact of Sports Streaming on Pay-TV Retention and Consumer Demand

In the United States, live sports availability is a significant factor in the retention of 55% of pay-TV households, according to data from Parks Associates. While only 22% of OTT video service consumers reported watching live sports, 40% of US households with a legacy pay-TV subscription view sports on pay-TV. This is, in part, because sports rights have been skewed towards pay-TV arrangements with network broadcasters.

Leagues, streaming services, media corporations, and advertisers are all cognizant of the fact that this sentiment is shifting in response to consumer demand. Consumers want more sports content on their streaming service, but the fragmentation of sports content online has been a pain point for consumers. 

Consumer adoption of this new sports streaming content partnership between Warner Bros. Discovery, ESPN, and FOX will depend on the price point and content offerings. However, the fragmentation of sports rights online might be easier for the consumer looking for their favorite team or game!

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